Taiko Warns Users to Withdraw Funds Following Bridge Security Compromise

Taiko has reported a compromise in its chain state verification system, warning that the underlying security assumptions for all bridges on the network can no longer be considered reliable.

Following this discovery, the project encouraged users to withdraw assets from compromised bridges and requested that centralized exchanges temporarily disable TAIKO deposits.

This development follows an earlier disclosure from the Blockaid security firm, which identified an exploit targeting Taiko’s ERC20 Vault on Ethereum. The incident reportedly resulted in losses exceeding $1 million and has been linked to a vulnerability in the bridge’s source-signal proof verification mechanism.

Source: Taiko